Self build mortgage once I am discharged

Rictina

Hi all.

Could anyone tell me what my chances are of getting a self build mortgage once I`am discharged.

Also what type of %age deposit I should be looking at ?

Has anyone else gone through a similar process recently, I would really love to hear from ?

Tinytim

Hi Rictina,

Unfortunately you will find it very difficult. The main self build lender tends to be Birmingham Midshires via Buildstore, and they are the only one who will fund each stage of the build in advance. They will accept applications six years after discharge and will lend to 75% of finished value but can lend more than 75% of cost as the build progresses.

The other option is Nationwide who will consider an application three years after discharge, up to 75%. However, there is no facility for advanced stage payments so in addition to the deposit you will need to fund each stage of the build.

There is a lender called Cheshire Mortgage Corporation who are part of Blenhiem finance that are rumoured to offer self-build (and other) mortgages on discharge. However, the maximum loan is 75% and the rates are rumoured to be in the order of 17% variable.......IMHO I can't think of any valid reason why someone would contemplate paying credit card rates for a mortgage!

Rictina

Thanks Tinytim, it was worth asking.

Do you know if I would get a normal mortgage to buy a house after discharge ?